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Unfortunately, this leaves you without the financial security you previously enjoyed if you decide to return home.
It also absorbs money you might prefer that your loved ones inherit after you pass away.
You can take steps to protect your assets from this outcome.
Qualifying for Medicaid, a necessity for most people facing a stay in a nursing home, requires falling below a certain financial threshold set by the individual state.
Nevertheless, a living trust will help you avoid probate.
For lawsuit-proof wealth, you need an irrevocable trust or another protective entity.
Now folks from every economic background use trusts for myriad purposes. During your lifetime, your assets remain in your name and would be unprotected against your creditors, unless they have otherwise been sheltered.
It is also true that 401k’s and IRAs are deemed a countable asset by Medicaid which, without proper Medicaid planning by an elder law attorney, would likely prevent someone from being eligible for Medicaid.
Since you cannot revoke or change an irrevocable trust, your creditors have no greater power to unwind your trust and reclaim its assets.